IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q1 FY2016 Earnings Presentation
36 slides from IndusInd Bank's earnings presentation, Jul 13, 2015
Slide 1: Investor Presentation
Investor Presentation July 13, 2015
Slide 2: Q1 – FY16 Performance Highlights
Key performance vectors remained stable Q1 – FY16 Performance Highlights Q-o-Q PAT growth up by 6 per cent Non-Interest Income to revenue remains healthy at 42% with Core Fee growth at 23% NIM stable at 3.68% Credit growth above industry - 23% Y-o-Y and 5% Q-o-Q Net NPA at 0.31% Credit
Slide 3: Plan vs Outcome
Plan vs Outcome Planning Cycle 3 (2014–17) Q1-FY 16 Outcome Loan Growth 25% - 30% 23% CASA Growth CASA > 35% 35% Resulting in Fee Growth 26% Exceed Loan Growth 23% Core Fee Growth Branch Network To Double from 602 811 Customer Base To Double On track 3
Slide 4: Planning Cycle 3: Key New Initiatives
Planning Cycle 3:Key New Initiatives Targeting “S” of Tractor Financing Retail Trade / FX SME Retail Retail Assets Assets Ramp Innovative Real Estate Ramp Up Up Customer Offerings Asset Front and Back Full suite of Rural Reconstruction Office optimization Products 4
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.66% 3.63% 3.67% 3.68% 3.68% 1.92% 1.88% 1.90% 1.91% 1.90% 20.36% 19.79% 18.99% 18.24% 18.31% Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 *on average equity Cost /Income
Slide 6: Ratings
Ratings ICRA AA+ for Lower Tier II subordinate debt program by ICRA ICRA AA for Upper Tier II bond program by ICRA CRISIL A1+ for certificate of deposit program by CRISIL CARE AA+ for Lower Tier II subordinate debt program by CARE IND A1+ for Short Term Debt Instruments by India Ratings an
Slide 7: Financial Performance
Financial Performance ; Indusind Bank
Slide 8: Steady Headline Numbers for Q1-FY16
Steady Headline Numbers for Q1-FY16 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 981 crs 22% 6% Income Other Income Rs 724 crs 26% 10% Core Fee Income Rs 599 crs 23% 5% Revenue Rs 1,705 crs 24% 8% Operating Profit Rs 923 crs 23% 8% Net Profit Rs 525 crs 25% 6% 8
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 72,243 crs 23% 5% Corporate Rs 42,236 crs 27% 5% Advances Consumer Finance Rs 30,007 crs 18% 6% Advances Deposits Rs 77,693 crs 22% 5% CASA Rs 26,945 crs 26% 7% SA Rs 14,016 crs 33% 8% Borrowings Rs 21,428 crs 51% 4% 9
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) Q1FY16 Q1FY15 Y-o-Y (%) Q4FY15 Q-o-Q (%) Capital & Liabilities Capital 531 526 1% 530 - Reserves and Surplus 10,650 8,951 19% 10,115 5% Deposits 77,693 63,893 22% 74,134 5% Borrowings 21,428 14,196 51% 20,618 4% Other Liabilities and Provisions 4,114 2,789 48%
Slide 11: Profit and Loss Account
Profit and Loss Account (Rs Crs) Q1FY16 Q1FY15 Y-o-Y (%) Q4FY15 Q-o-Q (%) Net Interest Income 980.66 800.66 22% 925.14 6% Other Income 724.34 576.37 26% 658.48 10% Total Income 1,705.00 1,377.03 24% 1,583.62 8% Operating Expenses 782.28 627.83 25% 733.11 7% Operating Profit 922.72 74
Slide 12: Key Financial Indicators
Key Financial Indicators Q1FY16 Q1FY15 Q4FY15 Return on Assets 1.90% 1.92% 1.91% ROE (On average equity) 20.36% 18.99% 19.79% Cost / Income Ratio 45.88% 45.59% 46.29% Net Interest Margin 3.68% 3.66% 3.68% Net NPA 0.31% 0.33% 0.31% EPS (annualized, Rs. per share) 39.60 32.04 37.44 Capital + Reserves
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 68,788 72,243 55,102 44,321 58% 59% 35,064 55% 51% 56% 45% 41% 42% 44% 49% FY12 FY13 FY14 FY15 Jun-15 Consumer Finance Division Corporate & Commercial Banking (Rs crs) (Rs crs) Corporate Consumer Finance June-15 June-15 Banking* Utility Vehicle Small Com
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book Lease Rental 5.09% Services 2.31% Gems and Jewellery 2.23% Telecom- Cellular 1.94% NBFCs 1.92% Power Generation 1.90% Real Estate Developer 1.78% Media,Entertainment & Advt 1.76% Housing Finance Companies 1.70% Rubber & Rubber Products 1.47% Contract Construction-Civi
Slide 15: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P 22% E R C 20% Investment Grade Sub Investment Grade E N 18% T 16% O F 14% Unsecured Non Fund Based % R Secured Non Fund Based % A 12% Unsecured Fund Based % T Secured Fund Based % E 10% D P 8% O R 6% T F 4% O L I 2% O 0% IB1 IB2+ IB2 IB2- IB3+ IB3 IB3- IB4+ IB4 I
Slide 16: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 30,000 33.3% 33.9% 34.1% 34.1% 34.7% 38% 32.6% Focus on target market segments 25,000 33% 20,000 26,945 Government business 23,634 25,300 27% 15,000 22,363 Capital market flows 19,691 21,305 21% 10,000 Key N
Slide 17: Other Income
Other Income (Rs crs) Q1FY16 Q1FY15 Y-o-Y (%) Q4FY15 Q-o-Q(%) Core Fee 598.93 486.52 23% 568.57 5% Securities/MM/FX 125.41 89.85 40% 89.91 39% Trading/Others Total 724.34 576.37 26% 658.48 10% 17
Slide 18: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q1FY16 Q1FY15 Y-o-Y(%) Q4FY15 Q-o-Q(%) Trade and Remittances 56.19 61.54 (9%) 79.80 (30%) Foreign Exchange Income 159.45 134.85 18% 110.20 45% Distribution Fees 106.99 74.65 43% 127.37 (16%) (Insurance, MF, Cards) General Banking Fees 48.94
Slide 19: Yield / Cost Movement
Yield / Cost Movement 12.72% 12.77% 10.09% 10.13% Yield on Assets 7.60% 7.68% Yield on Advances 6.41% 6.45% Cost of Deposits Cost of Funds Q1FY16 Q4FY15 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY16 Q4FY15 Outstanding Yield Outstanding Yield (Rs crs)
Slide 20: Credit Cost
Credit Cost (Rs crs) FY12 FY13 FY14 FY15 Q4FY15 Q1FY16 Corporate Bank 61.11 116.51 93.70 143.74 40.22 39.67 Consumer Finance 81.46 103.10 169.97 195.19 47.15 51.54 Gross Credit Costs 142.57 219.61 263.67 338.93 87.37 91.21 Gross Credit Costs 41 50 48 49 13 13* (Basis Points on Advances) Net Credit C
Slide 21: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q1FY16 Q4FY15 Corporate Consumer Total Corporate Consumer Total Opening Balance 234 329 563 340 333 673 Additions 13 120 133 316 133 449 Deductions 22 104 126 *422 137 559 Gross NPA 225 345 570** 234 329 563 Net NPA 225 210 % of Gro
Slide 22: NPA Composition – Consumer Finance - Vehicles
NPA Composition – Consumer Finance - Vehicles (Rs crs) Com. Const. Small LAP/HL Q1-FY16 Utility TW Cars Cards Total Vehicle Equip. CV /PL Gross NPA 135 22 42 19 76 19 21 11 345 Gross NPA % 1.18% 1.06% 1.46% 1.04% 2.65% 0.58% 0.48% 1.32% 1.14% Com. Const. Small LAP/HL Q4-FY15 Utility TW Cars Cards To
Slide 23: CRAR
CRAR (Rs Crs) 30 June 15 31 March 15 Basel – III Basel – III Risk Weighted Assets - Credit Risk 77,727 76,718 - Market Risk 4,035 4,356 - Operational Risk 8,837 7,855 - Total RWA 90,599 88,929 Tier I Capital Funds 10,468 9,975 Tier II Capital Funds 795 776 Total Capital Funds 11,263 10,751 CRAR 12.4
Slide 24: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Sept 30, Dec 31, Mar 31, June 30, Particulars 2014 2014 2015 2015 Branch 685 727 801 811* Network ATMs 1,277 1,350 1,487 1,543 *includes 58 specialized branches Note: Numbers given above are total • Branch/Representativ
Slide 25: Shareholding Pattern
Shareholding Pattern June 30, 2015 GDR issue, 12.18 Promoters, 15.04 NRIs/ Director/ Others, 5.52 MFs / Banks/ Insurance Co, 9.41 Individuals, 7.37 Private Corporates, 11.90 FIIs, 38.58 25
Slide 26: New Launches
New Launches Indusind Bank
Slide 27: Quick-Pay
Quick-Pay • Enables customers to send and receive money instantly through SMS or E-mail • No Need to fill in beneficiary Bank Account details – Just fill the E-mail Id or Mobile Number of the receiver • Can choose to send E-Gift Cards • QuickPay happens via NPCI’s Immediate Payment Service (IMPS Per
Slide 28: Association with World Pay
Association with World Pay • World Pay the global leader in payments has partnered with IndusInd Bank Limited to offer domestic acquiring services in India. • Ability to take payments in 120 currencies across the world • Contribute to the growth of the ever growing Indian eCommerce industry 28
Slide 29: Loan Against Shares
Loan Against Shares • In partnership with Bajaj Financial Services Ltd. • Loan up to Rs. 50 crores • Loan against shares, Mutual Funds, Bonds, FMPs • Attractive Interest Rates 29
Slide 30: New Currency Chest Kolkata
New Currency Chest Kolkata • Equipped with state-of-the-art cash processing facilities to cater to the needs of IndusInd branches and ATMs in eastern part of the country • Enables the Bank branches to handle larger volumes of cash • Enables customers to exchange their notes into those of higher or l
Slide 31: CSR Initiative
CSR Initiative Indusind Bank
Slide 32: CSR Initiatives
CSR Initiatives • IndusInd Swacch Vidyalaya - Two phases of School Sanitation Facility Mapping complete - Mobilization of teachers and community on-going - Construction / Renovation of toilets– 10 toilets in Kolhapur complete and 7 in Gadhinglaj under progress - Formed school sanitation management C
Slide 33: Accolades
Accolades eae) Indusind Bank
Slide 34: Accolades
Accolades The Asset- Treasury, Trade and Risk Management Awards 2015 under the Country Category for Best Cash Management Solution, Best Electronic Implementation Solution & Best Liquidity Management Solution 34
Slide 35: Thank you
Thank you 9 Indusind Bank
Slide 36: Disclaimer
Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No in